In the News: Americans are Feeling the Effects of Money Stress

Posted by James Schiavone on May 03, 2013

For many
Americans money stress brought on
by lighter paychecks this year is affecting more than their wallets — it’s
taking a toll on their waistlines, friendships and the amount of sleep they get.
That’s according to results of a new survey fielded for the American Institute of CPAs by Harris Interactive in recognition of National
Financial Capability Month.

The telephone survey, conducted between March 14 and March 17,
asked 1,011 U.S. adults to name all the ways financial stress is affecting
their lives. Of those who rate their financial stress “very” or “somewhat
high,” almost half, 47 percent, said they are sleeping less; 43 percent said
they have less patience with friends or are seeing them less often and 31
percent are eating more junk food or gaining weight.

“Mounting money pressures
are making Americans cranky, tired and unhealthy,” said Ernie Almonte, CPA, CGMA, chair of the AICPA’s National CPA
Financial Literacy Commission. “This can lead to a double whammy, with ensuing
physical and emotional stress potentially leading to higher long-term costs.
Americans must find ways to cope with money stress even when financial
challenges seem daunting.”

Even worse,
financial stress is fairly common and doesn’t seem to be going away any time
soon.

As Plan Sponsor reports, the AICPA survey
found 44 percent of U.S. adults currently register a high level of financial
stress—with women almost twice as likely as men to say it is “very high.” Only
28 percent of adults see a reduction in financial stress over the next six
months.

AccountingWEB discussed the survey results, with
Sharon Lechter, CPA, member of AICPA’s
National CPA Financial Literacy Commission financial literacy expert and
author of the AICPA publication Save
Wisely, Spend Happily,
the CPA profession's first consumer book that offers expert advice from CPAs
across the country on myriad topics.

“The findings
really underscore the tremendous effects of financial stress. The simple fact
is this: It costs to live. We have to pay for shelter, food, clothes,
transportation, child care, health care, and the list goes on, Lechter said.”
“When you have a financial setback, the challenge confronts you constantly and
can seem overwhelming. It will absolutely take a toll on other parts of your
life. That's why it's so important to have a firm understanding of your
financial situation and a plan to move forward. What's the old saying? 'If you
fail to plan, you plan to fail.' A budget and a plan can help mute the ill
effects of financial stress.”

You can read
the interview, which includes additional insights on the
survey results and tips on how Americans can alleviate money stress on
AccountingWEB.com.

The CPA profession has a comprehensive financial education
program—360 Degrees of Financial Literacy—to help Americans achieve long-term
financial success. A robust website is the centerpiece of the program with tools, calculators and
advice to help Americans understand and manage their financial needs during 10
life stages, from childhood to retirement.